Possible 'Death Cross' on USD/JPY, short close below 200-DMA
USD/JPY extends grind lower, breaks 200-DMA at 111.822. Possible 'Death Cross' on daily charts adds scope for downside.
A decisive close below 200-DMA could see extension of weakness.
Consecutive spinning top and doji formations on daily candles suggests some consolidation.
A fresh wave of greenback selling pressure has been one of the key factors weighing on the major.
Risk-off, as depicted by weaker global equity markets was also seen lending support to the Japanese Yen's safe-haven appeal.
We see weakness only on close below 200-DMA support, test of 110.95 (June 22 low) then likely.
On the flipside, breakout above 20-DMA could see bearish invalidation.
Support levels - 111.25 (cloud top), 111, 110.95 (June 22 low)
Resistance levels - 112.04 (5-DMA), 112.70 (20-DMA), 113
Good to go short on decisive close below 200-DMA, SL: 112.70, TP: 111.25/ 111/ 110.25
A decisive close below 200-DMA could see extension of weakness.
Consecutive spinning top and doji formations on daily candles suggests some consolidation.
A fresh wave of greenback selling pressure has been one of the key factors weighing on the major.
Risk-off, as depicted by weaker global equity markets was also seen lending support to the Japanese Yen's safe-haven appeal.
We see weakness only on close below 200-DMA support, test of 110.95 (June 22 low) then likely.
On the flipside, breakout above 20-DMA could see bearish invalidation.
Support levels - 111.25 (cloud top), 111, 110.95 (June 22 low)
Resistance levels - 112.04 (5-DMA), 112.70 (20-DMA), 113
Good to go short on decisive close below 200-DMA, SL: 112.70, TP: 111.25/ 111/ 110.25
